Earth economics studies the economy of our planet from the perspective of an autarkic system (a “closed economy”). It ignores the constituent national and regional parts of the planet economy and focuses on the whole. The book respects the heritages of IS/LM (Keynes) and neoclassical growth (Solow) not out of economic respect but because these tools are very useful in understanding the crisis and the policy response to that crisis.

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Thursday, October 9, 2014

A recent background paper for the UN Commission for Development Planning takes up the issue of hetrogenity pointing out that whereas for the group of developing countries heterogeneity has increased global hetrogeneity is decreasing after a rise in the 1980 and 1990s. The working paper provides an alsternative measure (coefficient of variantion op per capita GDP) although for a much shorter period) for the metrics of global fragmentation applied in Chapters 13 and 14 of Earth Economics (C1 to C4 ratio and Herfindahl). The underlying data sources are identical.